TMI Blog1998 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... 47) of the Income Tax and hence subject to capital gains - but gains u/s 45 of the IT Act has arisen - - - - - Dated:- 12-2-1998 - B. N. KIRPAL. and A. P. MISRA. JUDGMENT In respect of the assessment year 1968-69, the Income-tax Tribunal had referred the following question of law to the High Court (see [1984] 149 ITR 545, 546) : "Whether, on the facts and in the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of the route permit. The Appellate Assistant Commissioner reduced the quantum of the capital gains but the Tribunal, on a further appeal by the assessee came to the conclusion that on conversion of individual business into a partnership it did not result in any transfer as envisaged by section 45 read with section 2(47) of the Income-tax Act. It accordingly directed the amount of capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot an interest, there was a transfer of interest in law. It was, however, held that for such a transfer no consideration was received within the meaning of section 48 and, therefore, no profit or gain had accrued to the transferor for the purposes of section 45 of the Act. Therefore, there was no capital gains which could be taxed. The position in the present case is similar. The exclusive busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t this aspect of the case specifically. We would, therefore, frame an additional question. The original question would be regarded as question No. 1 and additional question would be question No. 2 as follows : "If the answer to question No. 1 is in the negative, then would such a transfer result in there being any gains or profit taxable under section 45 of the Act ?" Following the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
